Listing Category: Financial Reporting and Analysis

Financial Modeling Courses

How to build a financial model in Excel from scratch

Inventory Methods: FIFO vs. LIFO vs. Average Cost vs. Specific Identification and Periodic vs. Perpetual

I apologize in advance: this article’s long.

Every inventory method has two important characteristics:

How will costs be assigned to cost of goods sold (COGS) and ending inventory (EI)?
When will those costs be assigned to COGS and EI?…

Breaking Down CFA® Financial Reporting and Analysis – Level I

Through your studies, one of the most vital segments of the CFA® exam process you’ll encounter is the Financial Reporting and Analysis section. From an exam perspective, it represents roughly a fifth of the material covered. From a client perspective, it also holds quite a bit of future value, as interpreting reports and analyses are a big part of what investment analysts and asset managers do

Weighted Average Common Shares Outstanding (WACSO)

One key to computing earnings per share (EPS) is computing the number of shares of common stock to use in the denominator; we call this number the weighted average common shares outstanding (WACSO). There are two ways to calculate WACSO; we’ll cover both.

Simple Income Statement

A useful skill to develop is that of writing out a quick, simple, general income statement. Here is an example that you should be able to reproduce in 10 – 15 seconds during the exam:

Simple Cash Flow Statement

A useful skill to develop is that of writing out a quick, simple, general cash flow statement. Here is an example that you should be able to reproduce in 10 – 15 seconds during the exam:

Simple Balance Sheet

A useful skill to develop is that of writing out a quick, simple, general balance sheet. Here is an example that you should be able to reproduce in 10 – 15 seconds during the exam:

Leases III: Effect on Financial Statements and Ratios

A lease is a contract that lets one party use an asset owned by another party, in exchange for periodic payments. The owner of the asset is the lessor; the user of the asset is the lessee. For the purposes of financial reporting, leases are divided into two categories, based on the economic substance of the transaction:

Leases II: Calculations

A lease is a contract that lets one party use an asset owned by another party, in exchange for periodic payments. The owner of the asset is the lessor; the user of the asset is the lessee. For the purposes of financial reporting, leases are divided into two categories, based on the economic substance of the transaction:

Leases I: Criteria for Classification

A lease is a contract that lets one party use an asset owned by another party, in exchange for periodic payments. The owner of the asset is the lessor; the user of the asset is the lessee. For the purposes of financial reporting, leases are divided into two categories, based on the economic substance of the transaction: